Vista Oil & Gas (Vista) announced that it has agreed this Monday to acquire a 50% operating interest in the Aguada Federal and Bandurria Norte concessions (the Assets), located in the Vaca Muerta shale oil field, from Wintershall DEA Argentina SA (the Transaction).
Through its subsidiary Vista Oil & Gas Argentina SAU, the company made the purchase.
With this, Vista will control the entirety of both areas.
The effective date of the Transaction is January 1, 2022.
Through the Transaction, Vista Oil & Gas will acquire 25,231 net acres, increasing its total acreage in Vaca Muerta to 183,084 acres.
The company will also add up to 150 new well locations to its Vaca Muerta portfolio, totaling up to 850 new identified well locations.
The definitive closing of the Transaction will take place through the issuance of a decree by the Province of Neuquén approving the assignment of the Vista Assets.
Vista Oil & Gas
The company has agreed to pay a purchase price of $140 million, of which $90 million is payable on or before January 18, 2022, and the remaining $50 million is payable in 8 equal quarterly installments beginning in April 2022.
In addition, the Transaction effectively cancels the $77 million consideration that the company had assumed on September 16, 2021, when it acquired the initial 50% interest in the Assets.
«This operation is a unique opportunity that allows us to continue expanding our leadership in Vaca Muerta and reaffirm our commitment to its development by incorporating high-potential assets, in which we intend to capture important operating synergies,» said Miguel Galuccio, president and manager. view overview.
And he added: “As operators of the blocks, we plan to replicate our operating business model based on efficiency, security and, above all, sustainability.”
On the one hand, Aguada Federal is located in the Vaca Muerta black oil window with a surface area of 24,058 gross hectares.
Since 2017, a total of 6 horizontal wells have been drilled in this concession, all of which demonstrated hydrocarbon production.
Total production in the third quarter of 2021 was 718 barrels of oil equivalent per day.
There were no proven reserves recorded at the end of 2020.
In addition, the company estimates that there are up to 150 new (gross) well locations to be drilled on this block.
On the other hand, Bandurria Norte is located in the volatile oil window of Vaca Muerta, with a surface area of 11,000 gross hectares.
Since 2017, a total of 4 horizontal wells have been drilled in this concession, all of which proved hydrocarbon production, before being closed in 2019. There were no proven reserves on record at the end of 2020.
The company estimates that there are up to 150 new (gross) well locations to be drilled on this block.
Each of the blocks has been awarded by the Province of Neuquén with an unconventional exploitation concession that expires in 2050 and has no remaining investment commitments.